More than £100m is being made available for private sector projects to kick-start Greater Manchester's economic recovery in a pioneering scheme unveiled today.

In a first for the UK, all 10 local authorities in Greater Manchester are to deliver a single investment strategy using £100m in pooled European and government funding.

The money will be provided as short-term loans to companies in return for an equity stake in the hope that it will encourage them to invest in projects which create jobs and provide economic growth.

Once repaid, the money will be “recycled” into further schemes.

It is hoped that all of the £100m available will have been invested within the next 12 months and then repaid over terms ranging from two to five years.

Sir Howard Bernstein, chief executive of Manchester city council, said he would be disappointed if there was not a pipeline of projects worth £500m - £100m in loans from the public sector and £400m in private sector investment - within the next four years.

A three-strong team has been recruited to manage the funds.

Potential schemes will be vetted and prioritised by the Greater Manchester Combined Authority – which contains representatives from the region's 10 local authorities – and the Greater Manchester Local Enterprise Partnership.

The scheme's architects say that they want to end the “cycle of grant dependency” and replace it with a “cycle of investment”.

Details of the Greater Manchester Investment Plan will be unveiled to an invited business audience at Manchester town hall tonight.

The £100m funding pot is drawn from the Regional Growth Fund, the Growing Places Fund, the Evergreen Fund, European Regional Development Fund and the Homes and Communities Agency.

Sir Howard said: “The projects involved will get specialist support from the investment team, but, let me be very clear, this is not about getting free money.

“In order to be successful, these projects have to deliver real benefits for the region's economy and be able to re-invest in the fund.

“This is a revolutionary way of working for local government, with all 10 authorities working as a single team to drive regional investment.

“We recognise that each area has its own unique offer and by channelling opportunities through a single investment team, we can make the most of all our strategic sites and opportunities.

“For businesses with strong projects planned, this will give them a real boost to help them get the projects off the ground and make the most of funding opportunities.

“Businesses really have nothing to lose by sending their proposals.

“For us, this process helps us to identify the absolute best projects for Greater Manchester and make sure those we take forward will stimulate and drive our regional economy.”